[Anthias Labs] Minimum Reserve Recommendations (11/19/25) (Base)
We recommend that the protocol immediately pause all reserve auctions and redirect 100% of future reserve accruals toward repaying the bad debt originating from the events on October 10, 2025 and November 4, 2025.
The analysis below outlines:
- the current level of protocol reserves,
- our proposed minimum reserve targets, and
- the outstanding bad debt across markets.
Current Reserves
| Asset | Price | Total Reserves | Total Reserves (USD) |
|---|---|---|---|
| AERO | 0.774 | 137,063.96 | $106,087.50 |
| cbBTC | 92004.489 | 3.16 | $290,678.98 |
| cbETH | 3336.93 | 9.55 | $31,863.68 |
| cbXRP | 2.161 | 26,826.63 | $57,972.35 |
| DAI | 1 | 1,333.95 | $1,333.95 |
| EURC | 1.16 | 22,533.74 | $26,139.13 |
| LBTC | 92182.587 | 0.17 | $15,735.57 |
| MAMO | 0.03 | 1,238.17 | $37.15 |
| MORPHO | 1.808 | 14,147.71 | $25,579.06 |
| rETH | 3460.501 | 2.93 | $10,143.07 |
| tBTC | 92205.371 | 0.07 | $6,869.30 |
| USDC | 1 | 570,592.26 | $570,592.26 |
| USDS | 1 | 118.39 | $118.39 |
| VIRTUAL | 1.055 | 40,961.17 | $43,214.03 |
| weETH | 3264.796 | 6.00 | $19,600.53 |
| WELL | 0.009 | 2,209,845.56 | $19,888.61 |
| WETH | 3021.114 | 347.30 | $1,049,237.42 |
| wrsETH | 3197.981 | 0.81 | $2,596.12 |
| wstETH | 3682.751 | 6.61 | $24,351.82 |
Recommended Minimum Reserves
These recommended minimum reserves are set above (a) current reserve balances plus (b) the additional reserves needed to fully absorb existing bad debt. Implementing these targets should inhibit reserve auctions in the near term.
| Asset | Recommended Reserves |
|---|---|
| AERO | 600000 |
| cbBTC | 4 |
| cbETH | 100 |
| cbXRP | 1300000 |
| DAI | 1500 |
| EURC | 250000 |
| LBTC | 1 |
| MAMO | 600000 |
| MORPHO | 140000 |
| rETH | 6 |
| tBTC | 1 |
| USDC | 800000 |
| USDS | 2500 |
| VIRTUAL | 2000000 |
| weETH | 8 |
| WELL | 4000000 |
| WETH | 400 |
| wrsETH | 1 |
| wstETH | 100 |
Bad Debt and Remediation Plan
The table below shows, for each market on Base:
- the current bad debt balance,
- any excess reserves (i.e., reserves exceeding the amount needed to cover that market’s own bad debt), and
- the additional reserves still required to fully clear the bad debt in that market.
A significant portion of reserves currently sits unused in the WETH, USDC, and cbBTC markets (347 WETH, 490K USDC, and 3 cbBTC). We recommend fully utilizing the excess reserves in these markets to cover the current bad debt starting with the most significantly impacted markets: cbXRP and VIRTUAL.
| Asset | Bad Debt (tokens) | Excess reserves available (tokens) | Excess reserves available (USD) | Additional reserves required to cover bad debt (tokens) | Additional reserves required to cover bad debt (USD) |
|---|---|---|---|---|---|
| AERO | 457,772.03 | 0 | $0.00 | 320,708.07 | $248,228.04 |
| cbBTC | 0.15 | 3.01 | $277,172.72 | 0 | $0.00 |
| cbETH | 47.85 | 0 | $0.00 | 38.30 | $127,809.09 |
| cbXRP | 1,217,787.32 | 0 | $0.00 | 1,190,960.69 | $2,573,666.05 |
| DAI | 0.00 | 1,333.95 | $1,333.95 | 0 | $0.00 |
| EURC | 154,347.27 | 0 | $0.00 | 131,813.53 | $152,903.69 |
| LBTC | 0.00 | 0.17 | $15,735.57 | 0 | $0.00 |
| MAMO | 0.00 | 1,238.17 | $37.15 | 0 | $0.00 |
| MORPHO | 119,085.07 | 0 | $0.00 | 104,937.36 | $189,726.75 |
| rETH | 0.00 | 2.93 | $10,141.34 | 0 | $0.00 |
| tBTC | 0.01 | 0.06 | $5,753.62 | 0 | $0.00 |
| USDC | 79,888.75 | 490,703.51 | $490,703.51 | 0 | $0.00 |
| USDS | 0.00 | 118.39 | $118.39 | 0 | $0.00 |
| VIRTUAL | 1,902,516.07 | 0 | $0.00 | 1,861,554.90 | $1,963,940.42 |
| weETH | 0.00 | 6.00 | $19,589.76 | 0 | $0.00 |
| WELL | 0.00 | 2,209,845.56 | $19,888.61 | 0 | $0.00 |
| WETH | 0.23 | 347.08 | $1,048,557.37 | 0 | $0.00 |
| wrsETH | 0.00 | 0.81 | $2,595.16 | 0 | $0.00 |
| wstETH | 81.80 | 0 | $0.00 | 0 | $0.00 |
| Total: $1,891,627.15 | Total: $5,256,274.05 |